ExxonMobil Postpones Cyprus Drilling: Report
ExxonMobil has told the government of Cyprus that it has postponed its plans to drill its offshore Block 10 owing to the Covid-19 crisis, local media reported April 13.
The crisis has coincided with other, longer-term problems, such as the low gas price worldwide that has seen liquefaction capacity being shut in, including at the Idku plant in Egypt. Other final investment decisions have been put on hold.
Energy minister Georgios Lakkotrypis said that the results would be crucial for the evaluation of the resources: Block 10 is home to other finds, notably Eni's Calypso.
ExxonMobil’s first well at Block 10, Delphine, did not encounter commercial quantities of hydrocarbons; but the second well, completed in February 2019, did. Enough gas was found at Glaucus to justify a liquefaction plant. ExxonMobil is the operator of Block 1o with 60%; its partner is state Qatar Petroleum.
Italian Eni and French Total were also planning to drill offshore Cyprus in the first half of 2020, but it is not clear whether they will start the operation or not. Eni is the operator of Block 6 with 50% of participation interest while Total is partner with the remaining 50%. Discretionary spending will be under close scrutiny as the international oil companies weather the low oil price. Another of ExxonMobil's projects, the Rovuma LBNG project in Mozambique, has been postponed.
Eni has been present in Cyprus since 2013 and holds interests in six licences located in the EEZ of Cyprus (in Blocks 2, 3, 6, 8, 9 and 11), five of which are operated.